Link to the article: https://www.reuters.com/business/ongoing-supply-shortages-threaten-us-infrastructure-
war-efforts-2023-03-29/
Tight supplies of microchips and cement are causing difficulty for manufacturers of everything, from pickup
trucks to homes and this can also translate into higher costs and delays for the US government's effort
to help the Ukraine's war and to rebuild its own infrastructure
It is reported that supply shortages are easing for retail-focused industries but are still ongoing for growth
sectors like autos, machinery, defense and non-residential construction where demand is seen as strong.
The shortage of semiconductors also affects the defense industry as well as war-weapon makers
experience disruption in production not just for the US defense system but also for Ukraine.
However, the shortage also dissipated for personal computers after kids returned to school and parents to
their office, recorded by high sales of new computers.
3 comments:
It does not surprise that we see a shortage in key supplies as costs for materials have skyrocketed over the last year. This is not just a U.S. problem as the world has seen a halt in production of necessary materials. A big contributor to why we see a lack of production is how slow supply chains have been. The lack of efficiency in supply chains has turned firms off from producing if they are not able to get their products shipped off in time. This slow process has caused the economy to see a decrease in production and growth.
Hello Jeremy,
For a while now the shortage of microchips has affected the production of cars, phones, tablets, laptops, and many other devices. The government is now making it a priority to further the production of microchips. Since this shortage, there have been many new start-up companies to create and manufacture microchips.
Intel will be moving to Columbus Ohio soon, creating millions of microchips and thousands of jobs. This will benefit both the regional and national economies.
Overall, good post.
While the U.S. is working to encourage and develop semiconductor chips domestically, Taiwan is still leaps and bounds ahead of us. The problems they are having with China are the main cause of microchip supply chain issues. While a lot of problems may be fixed if the issues between China and Taiwan are resolved, this conflict is likely to persist, which has contributed to increased investment in microchip production here in the U.S.
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